Since 2021, several states have enacted legislation establishing a preference for the continued operation of coal-fired power plants rather than the development of other energy resources. In an update to a previous insight, Director of Environmental and Energy Policy Shuting Pomerleau explains why utilities, and not government mandates, are best positioned to choose which resources to retire or construct.

The insight concludes:

Over the decades, coal has declined drastically in its significance compared to nearly all other modern generation sources. With competing resources, utilities are no longer bound to operate last century’s technology. Instead, new modern facilities that are more cost effective can be developed while more costly technologies are retired.

While state legislatures and regulators undoubtedly have a role to play in balancing utility cost-effectiveness with the needs of a local economy, regulating the generation resource mix too inflexibly leads to increased costs ultimately borne by consumers. A more balanced approach involves policies that reduce barriers to developing the resource mix necessary for cost, carbon, and energy-efficient generation.

Read the analysis.